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Wednesday, April 20, 2011

Support Builds For A Business Tax Cut

That is the headline from today's Los Angeles Times. Here are the next three paragraphs.

"U.S. corporations have enjoyed a two-year bull run on Wall Street. They are sitting on a record amount of cash and are back to paying bonuses that are the envy of executives around the world.

And the icing on the cake for many of them might be just around the corner: a tax cut that has bipartisan support in Congress.

As part of their budget plan passed last week, House Republicans want to cut the corporate tax rate to 25% from 35%. The Obama administration and many Democrats also are looking to slice the current rate, but not as much."

If you needed any more evidence that Congress is insane, here it is.

First, 67% of all U.S. corporations pay NO income taxes. 35%X$0=$0 and 25%X$0=$0

In 1952, corporations paid 33% of all federal taxes. Last year, they paid 8.9%!!!!

Last year;

Hewlett Packard paid 20.2%

Apple paid 24%.

Google paid 21%.

And, of course, General Electric paid ZERO ($0)

So how did we get into this absurd situation? The Answer is simple: Special Interests!!

Special interests have created almost endless deductions and exceptions, all designed to reduce the tax bill.

Who but an INSANE congress could consider cutting business taxes even further just as we are approaching a debt ceiling?

Oh, I forgot. That would be the same Congress that continued the Bush tax cuts on the Richest Americans.

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